Gina Doshi

Consumers value a brand’s purpose over its features, generating a strong emotional bond. According to exit poll data, 66% of respondents consider a company’s purpose in buying decisions, with 62% incorporating it into rapid transactions. When cost and quality are equal, 71% choose a corporation with a purpose. Furthermore, 78% are more likely to recall brands with strong missions. These data emphasize the importance of purpose in influencing consumer preferences, influencing choices, and creating long-term brand partnerships. (Novelli, 2021).

A well-crafted vision statement is required for a successful brand. While developing a brand takes time and effort, a mission statement is an absolute must. It acts as your brand’s guiding principle, embodying its values and direction. A mission statement serves as a constant reminder of your brand’s purpose and ethics in today’s complex business world, amidst the myriad of responsibilities and decisions. It aids in making decisions that are in line with your goal. In a world where even vision can be political, a strong mission statement establishes your brand’s moral compass. A concise mission statement is critical for creating your brand’s identity and success. A mission statement is something that any brand will require if it is to be successful. (Mannino, 2020).

Luxury brands are embracing co-branding trends, as evidenced by Gucci and Adidas partnerships, which create separate logos and designs for collaborative collections. Gucci and Balenciaga, Fendi and Versace, Tiffany and Supreme, and Supreme with Rimowa are among the other high-profile collaborations. These partnerships are aimed at Generation Z and millennials, who see luxury as a form of self-expression and frequently mix vintage and high-street clothes to create their own look. This group craves authenticity and expects firms to keep their promises about sustainability and corporate responsibility.

To appeal to this expanding consumer base, luxury brands are employing marketing activations reminiscent of streetwear brands, such as pop giveaways, and guerrilla marketing strategies. It is expected that 30% of luxury sales would take place online by 2025. Gucci, for example, is taking steps to improve their web presence and encourage direct purchase from their storefronts. Non-fungible tokens (NFTs), game collaborations, virtual influencers, and cryptocurrencies are among the new prospects introduced by the metaverse. With partnerships like Roblox and Givenchy, and virtual clothing items in games like Fortnite by Balenciaga, luxury brands are also pushing into the gaming business. (Mitterfellner, 2023).

Referencing:

Mannino, S. (2020). Council Post: Why Every Brand Needs A Mission Statement. [online] Forbes. Available at:https://www.forbes.com/sites/forbesbusinesscouncil/2020/08/26/why-every-brand-needs-a-mission-statement/?sh=4b6fabc21eb3 [Accessed 28 Oct. 2023.]

Mitterfellner, O. (2023). Luxury Fashion Brand Management and Sustainability. Mastering Fashion Management. Available at: https://libsearch.arts.ac.uk/cgi-bin/koha/opac-detail.pl?biblionumber=1546849&query_desc=kw%2Cwrdl%3A%20Mitterfellner [Accessed 28 Oct. 2023.]

Novelli, P. (2021). PURPOSE PERCEPTION IMPLICIT ASSOCIATION STUDY. [online] Available at: https://www.porternovelli.com/wp-content/uploads/2021/02/Porter-Novelli-Purpose-Perception-Implicit-Association-Study.pdf. [Accessed 28 Oct. 2023.]

Economic profit is a measure of value production that takes explicit and opportunity costs into account. It is defined as invested capital multiplied by the spread on that capital (return on invested capital minus weighted average cost of capital). (Berg, Hedrich and Leon, 2017)

The concerns surrounding the fashion business are complex and important. It has a massive impact on the environment, society, and the economy. According to fashion industry data, the garment and textile sector is the world’s fourth largest.According to Fashion United, the industry employs 3,384.1 million people. Its monetary value is three trillion dollars. This equates to 2% of the world’s Gross Domestic Product (GDP). (Vilaca,2022)

“Fashion is one of the world’s most important industries, driving a significant part of the global economy (Fashion United).The global fashion sector will battle inflation and changing consumer patterns in 2023. The luxury industry is predicted to outperform, led by rich consumers in China and the United States, while Europe is expected to rise modestly due to exchange rates and energy difficulties. With the exception of luxury, the fashion market is projected to see moderate sales growth impacted by inflation. Companies must adapt to changing consumer demands, implement efficient digital marketing tactics, and engage in environmentally friendly production. Regional differences exist, with China and the United States outperforming Europe. Managing the impact of inflation and focusing on supply chain efficiency will be key for industrial resilience. (McKinsey 2022)

Creative directors play an important role in the fashion business, particularly in luxury firms. They develop a brand’s individual personality by injecting their original creative vision into all aspects of the organization, from collections to communication strategies. ‘The fashion industry is the quintessential example of an industry whose marketing has profoundly shaped and manipulated consumer tastes and, indeed, society. This creative direction creates a brand’s distinguishing feature, heavily affecting its visual design. Hedi Slimane’s reinvention of Yves Saint-Laurent in 1999, despite early controversy, resulted in tremendous success. Slimane bridged the gap between business and creativity by rebranding as Saint Laurent and introducing modifications such as unisex monochrome fashion, leading in increased brand recognition and profitability. Hence, creative directors bridge the gap between commerce and creativity and play an important role in the fashion industry, balancing artistic expression and commercial success. (Mitterfellner, 2019)

REFERENCING:

‌Berg, A., Hedrich, S.H. and Leon, J. (2017). THE TWO FACES OF FASHION- INDUSTRY PERFORMANCE. [online] Available at: https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/The%20two%20faces%20of%20fashion%20industry%20performance/The-two-faces-of-fashion-industry-performance.pdf [Accessed 20 Oct. 2023].

McKinsey (2022). The State of Fashion 2023: Holding onto growth as global clouds gather. [online] McKinsey. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion[Accessed 22 Oct. 2023].

Mitterfellner, O. (2019). Fashion marketing and communication : theory and practice across the fashion industry. Abingdon, Oxon ; New York, Ny: Routledge.[ Accessed 20 Oct. 2023]

‌Vilaça, J. (2022). Fashion Industry Statistics: The 4th Biggest Sector Is More Than Clothing. [online] Fashinnovation. Available at: https://fashinnovation.nyc/fashion-industry-statistics/ [Accessed 22 Oct. 2023].

IMAGE REFERENCING:

Fig 1. Mckinsey (2023). Year-over-year growth in fashion retail sales. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion [Accessed 22 Oct. 2023].

‌‌Fig 2. Wilson , E. (2013). Hedi Slimane, the creative director of Yves Saint Laurent, has introduced a vision for label that has proved divisive. Available at: https://www.nytimes.com/2013/04/18/fashion/hedi-slimanes-first-year-at-saint-laurent.html [Accessed 22 Oct. 2023].

Fig 1: People

People’s daily lives are heavily influenced by fashion.  Fashion is a way of expressing oneself, and all fashion businesses are formed by individuals, humans are the most closely related pillar in fashion. Designers, models, fashion influencers, consumers, and others are all human aspects of the fashion industry.

People born between 1996 and 2010 are considered Generation Z. Younger consumers are deeply concerned about social and environmental issues, which many see as defining issues of our day. They increasingly back up their beliefs with their purchasing habits, preferring brands that share their values and shunning those that do not. Almost nine out of ten Generation Z consumers feel businesses have a duty to solve environmental and social challenges. (McKinsey, 2023)

This generation searches truth in this generation. Individual expression is important to Generation Z, and they resist labels. They organize for a wide range of issues. They have a strong belief in the power of conversation to resolve issues and improve the world. That is why, in our opinion, Gen Z is the “True Gen.” Its members are more idealistic, combative, and less inclined to accept opposing viewpoints.Companies should be aware of three consequences for this generation: consumption as access rather than possession, consumption as a statement of individual identity, and consumption as a source of income. Businesses must reconsider how they give value to customers, rebalance scale and mass production versus customization, more than ever—practice what they preach when it comes to marketing and work ethics. (Francis and Hoefel, 2018)

“Embracing and fostering that diversity is what makes us stronger” (Victoria’s Secret, n.d.). Victoria’s Secret is an American lingerie brand that has always had the impression of being modelled by extremely slim girls, which has brought them a lot of controversies. However, they have made changes in recent years to diversify accordingly.

For example, Winnie Harlow, a model with vitiligo, was hired as one of their models in 2018. This certainly shows their inclusiveness and determination towards diversity. (ELLE, 2018)

Fig. 2 Winnie Harlow in Victoria’s Secret Runaway 2018

When connecting with individuals and addressing big societal concerns, it is critical to master and apply ideas and abilities. Sometimes a brand should prioritize the social impact it has on individuals and communities over its financial profits. To be successful, a fashion brand must be able to persuade, educate, stir people’s hearts, shift attitudes, meanings, and promote new ideas into the fashion business. Communication and teamwork are critical. (Hethorn and Ulasewicz, 2015)

Referencing List:

ELLE. (2018). El desfile completo de Victoria’s Secret 2018. [online] Available at: https://www.elle.com/es/moda/noticias/g23059700/victorias- (Accessed 15 Oct. 2023).

Francis, T. and Hoefel, F. (2018). ‘True Gen’: Generation Z and Its Implications for Companies. [online] McKinsey & Company. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies. (Accessed: 14 October 2023).

‌ Hethorn, J. and Ulasewicz, C. (2015). Sustainable fashion : what’s next? : a conversation about issues, practices and possibilities. New York: Bloomsbury, Fairchild Books, An Imprint Of Bloomsbury Publishing Inc. (Accessed: 14 October 2023).

What is Gen Z? | McKinsey. [online] www.mckinsey.com. Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z.(Accessed: 15 October 2023).

Reference for figures:

Fig 1:

Anon, (n.d.). Available at: https://people.acciona.com/?_adin=01743025240(Accessed on 15 October 2023).

Fig 2:

Dailymail (2018). Winnie Harlow in Victoria’s Secret Runaway 2018. Available at: https://www.dailymail.co.uk/tvshowbiz/article-6370165/Winnie-Harlow-makes-history-model-vitiligo-walk-Victorias-Secret-Fashion-Show.html. ( Accessed on 15 October 2023).

INTRODUCE THE PILLAR: PLANET

The rapid fashion business, in particular, causes serious environmental and societal issues. Every year, it produces 92 million tons of textile waste, with 30% of the clothing leaving unsold and frequently being burned for convenience. Fast fashion strains water resources owing to cotton farming, pollutes streams with harmful colours, and promotes microfiber pollution in the ocean. In addition, it accounts for 4% of the world’s greenhouse gas emissions. With customers purchasing 400% more apparel than they did 20 years ago, overconsumption is the root of this problem. Quick deterioration of low-quality clothing feeds the cycle. As consumer behaviour change, fashion becomes more of a passion, which results in unnecessary waste. Industry transformation requires sustainable business practices and ethical consumer decisions. (Komazova, 2022)

What is circular economy?

In a circular economy, nature is replenished and materials are never wasted. Products and resources are kept in circulation in a circular economy by procedures like upkeep, reuse, renovation, remanufacturing, recycling, and composting.  (Ellen Macarthur Foundation, 2023)

What is sustainability in relation to fashion?

We must first understand what exactly sustainability implies in the fashion business before we can examine how the sector is embracing it. Sustainability in this context refers to manufacturing and consuming clothing in a “sustained” manner that safeguards the environment and people are responsible for its production. True sustainability should also ensure that every aspect of the production process—from raw materials to manufacturing to working conditions and compensation is ethically and environmentally fair. (Bringé, 2023)

Describe 1 SDG from the UN SDG which has relevance and an impact on the fashion industry.

One SDG or Sustainable development goals from UN SDG which has relevance is Clean water and Sanitation. A brand in particular which Patagonia saves a lot of water and is immensely sustainable.

The different water footprints in Patagonia’s manufacturing processes are revealed by their transparency, bringing to light the difficult issues in supply chains. The amount of water used varies greatly depending on the type of clothing; for example, a cotton/Tencel women’s top uses 379 liters, a men’s nylon waterproof jacket uses 206 liters, and a polyester fleece top needs 135 liters. Interesting low-water products often require a lot of energy, highlighting the interconnectedness of environmental challenges. The most water-intensive clothing, such cotton T-shirts, is notable; this reflects historical practices and sustainability issues. This emphasizes the necessity of an all-encompassing sustainability approach and the pressing need to reconsider consumption patterns in order to create a more sustainable future. (Fletcher and Grose,2012, pp 28-29)

Reference:

Bringé, A. (2023). Council Post: The State Of Sustainability In The Fashion Industry (And What It Means For Brands). [online] Forbes. Available at: https://www.forbes.com/sites/forbescommunicationscouncil/2023/01/02/the-state-of-sustainability-in-the-fashion-industry-and-what-it-means-for-brands/?sh=470bd7091c82 (Accessed 7 Oct. 2023).

Ellen Macarthur Foundation (2023). What is a circular economy? [online] Ellen MacArthur Foundation. Available at:https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview. (Accessed on 5^th Oct. 2023)

Fletcher and Grose (2022) Fashion and Sustainability: Design for Change

Fig 1. No name (No date) The Circular Economy diagram, Available at:

https://www.eastdunbarton.gov.uk/residents/recycling-and-waste/circular-economy-support-residents

(Accessed on 5^th October,2023)

Fig 2. No Name ( No date) Nano Puffer Jacket, Available at:

https://www.alpinetrek.co.uk/patagonia-nano-puff-jacket-synthetic-jacket/

(Accessed on 5^th October,2023)

Komazova, I. (2022). Fast Fashion is Destroying Our Planet: What You Can Do | World Cleanup Day Blogpost. [online] Available at: https://www.worldcleanupday.org/post/fast-fashion-is-destroying-our-planet-what-you-can-do#:~:text=As%20about%2069%25%20of%20clothes. (Accessed on 5^thOctober,2023)